Debates of March 24, 2004 (day 7)

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister of Finance regarding his statement to the House this afternoon. I don't know if Santa Claus is at the North Pole or in Ottawa in terms of the goodies and the good news that he has given to the Northwest Territories in the response from the federal Member of Parliament. In terms of the Minister's statement, I believe that the budget will contribute positively to the overall situation in the Northwest Territories. I want to ask the Minister if he could explain in plain language his belief on how this budget will contribute to the Northwest Territories.

Minister of Finance.

Return To Question 75-14(3): Impacts Of Federal Budget On Small NWT Communities

Thank you, Mr. Speaker. I guess first and foremost would be how the federal budget has impacted us positively and we can pass that on to our constituents. Number one, most critical is that I will not have to come back in the June session with a negative $10 million supp which would mean cuts to programs.

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Mr. Speaker, that's the most critical and most important this year.

Going forward on the rest of the federal initiative, the money that they have identified for immunization will help our Department of Health and Social Services ensure that they have this money and that they will be able to deal with, for example, the scenario of immunization of meningitis that occurred here not too long ago.

In other areas, they've shortened the municipal infrastructure deal that they had in place. They had that deal over a 10-year period. It is now a five-year period, which means that all jurisdictions can draw down that money sooner rather than later. So that will have a positive spin-off effect to our communities. There is one catch on that, however. It is still matched dollars that we're going to have to match, so there are some limitations there, but in fact there are some of those positive spin-off effects that can happen for us.

Mr. Speaker, any work that happens in the Northwest Territories can benefit our contractors, whether those dollars are flowing through our departments or through the federal government departments. New dollars in the Northwest Territories mean work for our contracts. That can have a positive spin-off as well.

One of the critical areas that we've talked about and heard about in this House is the Mackenzie Valley development that's occurring around the pipeline, and the fact that the federal government is paying attention to that area and starting to highlight it in the budget. It's a small amount to start with. We're not sure how exactly it will flow, but as long as it's starting to flow, we can continue to work on that and try to improve on it. Thank you.

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Just recognizing the clock, the time has expired for oral questions, but I will allow Mr. Yakeleya his supplementary. Mr. Yakeleya.

Supplementary To Question 75-14(3): Impacts Of Federal Budget On Small NWT Communities

Mahsi cho, Mr. Speaker. I will also recognize the clock, and I have one final question for the Minister of Finance. I appreciate that, in light of the good news of the budget from the federal government and the recent discussions that Senator Nick Sibbeston had on naming of the Northwest Territories, the resources that the federal government takes out of the Northwest Territories I really think we should call ourselves Robin Hood, because the federal government keeps robbing us. Mr. Speaker, I would like to ask a question with regard to sharing of the dollars in the Northwest Territories and what type of necessary steps you will take. There are lots of interested groups that are also going to look at these dollars that the federal Finance Minister announced yesterday. So I would like to ask what steps have you looked at in terms of sharing resources with other governments. Thank you.

Minister of Finance, Mr. Roland.

Further Return To Question 75-14(3): Impacts Of Federal Budget On Small NWT Communities

Thank you, Mr. Speaker. First and foremost is the result of the exercise of not rebasing and that is $50 million. The biggest thing is keeping ourselves in a healthy state. So that's why we've identified this to go towards the deficit. We're not going to dig the hole that we're in any deeper.

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That will have positive spin-off effects going forward.

The other side of that is if we don't get the parties to the table to deal with royalty revenue sharing and get some real action happening around that table; as well, if the negotiations with federal Finance on the tax effort side do not work out as we're hoping we'll have them work out, as a government we're going to have to look at all options, all alternative revenue sources that are out there and look at how we, as residents of the Northwest Territories, can gain and benefit from the resources that are being extracted from the regions in the Northwest Territories. We're going to have to look at all options.

Right now, we're working with what we have and trying to come forward in small steps. This budget we're dealing with now is a stepping stone going forward. If we can do it right, come up with a balanced budget and have the federal government look at our arguments in a favourable way, we can definitely set up our future in a more positive way. Instead of having our children looking at debt, they can look at some sort of heritage going forward that would continue to be a positive benefit from the development in the Northwest Territories. Thank you.

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